Running on Empty: A Proposal to Improve City Finances

It is important for Canada to ensure that municipal funding includes adequate access to resources and the right incentives for municipal politicians to respond to the needs and wishes of their voters. In our search for a better financial model to improve political accountability, we find that an additional tax field for municipalities is generally not warranted, although it is important to provide municipalities with greater flexibility in financing their expenditure responsibilities. We conclude that current tax fields are adequate, since in most provinces, more revenue could be generated from residential property taxes or user fees. Additionally, municipalities can make more use of excise taxes, such as fuel and hotel taxes, to fund transportation and tourism: several cities already share, or have the right to share, in such taxes with the provinces.

• Record URL:
  http://www.cdhowe.org/pdf/commentary_226.pdf
• 
• Corporate Authors:

  C.D. Howe Institute

  67 Yonge Street
  Toronto, Ontario  Canada  M5E 1J8
• Authors:
  • Mintz, JM
  • ROBERTS, T
• Publication Date: 2006

Language

• English

Media Info

• Media Type: Web
• Pagination: 36 p.

Subject/Index Terms

• TRT Terms: Financing; Income; Local government agencies; Urban areas
• Subject Areas: Finance; I10: Economics and Administration;

Filing Info

• Accession Number: 01046957
• Record Type: Publication
• Source Agency: Transportation Association of Canada (TAC)
• Files: TAC
• Created Date: Mar 26 2007 10:57AM